Oil prices fall amid US recession fears

Oil continued on downward trajectory today, Sept. 4, after official data on US industrial activity renewed fears of a recession in the world's largest economy and a decline in global demand for crude oil. 

Brent crude futures for November delivery (the most active) was trading down 0.41% at $73.45 a barrel at 08:37 am Makkah time, after slumping 4.15% yesterday. 

WTI crude futures for October delivery declined 0.48%, or 34 cents, to $70 a barrel, Latest official data showed US manufacturing activity contracted for the fifth straight month in August, with weak demand and companies reluctant to invest in capital and inventory due to tighter monetary policy and uncertainty over the election. 

Meanwhile, a special survey from S&P Global released today indicated a slowdown in Chinese service sector activity in August, despite its continuous growth since January 2023. 

Companies in the sector cut hiring levels as average input prices rose at the fastest pace in more than a year, despite continued growth in new business activity and improved confidence in the business environment. 

Meanwhile, in Libya, legislative bodies agreed yesterday to appoint a new central bank governor within 30 days after UN-sponsored talks, which would end the crisis of the eastern government’s halt to oil production and exports.